2012
DOI: 10.1007/s10551-012-1267-9
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Business Unethicality as an Impediment to Consumer Trust: The Moderating Role of Demographic and Cultural Characteristics

Abstract: The article reports the findings of a study conducted among 387 consumers regarding their perceptions of the unethicality of business practices of firms and how these affect their response behavior, in terms of trust, satisfaction, and loyalty. The study confirmed that high levels of perceived corporate unethicality decrease consumer trust. This in turn reduces consumer satisfaction, which ultimately has negative effects on customer loyalty. It was also revealed that, although both consumer gender and urbanity… Show more

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Cited by 91 publications
(70 citation statements)
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References 135 publications
(159 reference statements)
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“…In the structural model analysis, we estimated all the path coefficients, simultaneously controlling for employee age, gender, education (years), marital status, and income [9,52,53]. Figure 1 shows the results.…”
Section: Hypothesis Testingmentioning
confidence: 99%
See 1 more Smart Citation
“…In the structural model analysis, we estimated all the path coefficients, simultaneously controlling for employee age, gender, education (years), marital status, and income [9,52,53]. Figure 1 shows the results.…”
Section: Hypothesis Testingmentioning
confidence: 99%
“…In addition, little research has explored the impact of consumer perception of CSR on negative outcomes of marketing, as most studies have focused on the positive outcomes, such as brand loyalty, reputation, and equity. However, it is important to research the consumer perception of CSR impact on negative outcomes, which are obstacles to developing consumer trust and often prevent repeat purchases [9]. Consumers would not be interested in hypocritical CSR engagement because they do not want a company to exploit social issues in its own interest.…”
Section: Introductionmentioning
confidence: 99%
“…In a Leonidou, & Chari, 2013;M'Sallem, Bouhlel, & Mzoughi, 2011;Chen & Mau, 2009). Therefore, the management strategies may be more fruitful with aiming to the internal process to enhance the degree of trust and commitment from customers, which give rise to loyalty in future.…”
Section: Discussmentioning
confidence: 99%
“…Leonidou, Kvasova, Leonidou and Chari (2013) say that the higher customers' perception of unethical corporate behavior, the lower the consumer confidence, which affects satisfaction and influences loyalty. Therefore, according to Svensson and Wood (2011), the strategies and tactics of an organization could lead to different perceptions and beliefs as to their corporate ethical behavior in their market.…”
Section: H2: the Brand Value (Bv) That The Company Has Significantly mentioning
confidence: 99%